Tax Attorney and Tax Resolution Services: IRS Help Blog » tax fraud

Tax Fraud Case: Business Woman Charged

TRS — Sun, 29 Jan 2012 01:32:08 +0000

A Dora, Ala., woman has been charged with tax fraud for her role at a medical clinic she managed and partly owned. Carol Twilley, 43, allegedly failed to account for and pay to the IRS the federal income taxes withheld and Federal Insurance Contributions Act taxes due to the United States on behalf of Horse Creek Family Medicine Inc. and its employees from November 2004 to January 2006. She faces up to five years in prison on each of the six tax fraud counts.

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IRS Halts Fingerprint Requirement for Tax Preparers

TRS — Fri, 09 Dec 2011 22:52:39 +0000

The IRS has temporarily suspended its controversial plan to fingerprint tax preparers in large part due to objections raised by the American Institute of CPA’s (AICPA). An excerpt from Accounting Today’s article, IRS Delays Tax Preparer Fingerprinting Requirements, shows IRS chief Doug Schulman, acknowledging they got the message and have decided “to hold off fingerprinting” while they consider all the information received by “interested parties.” The AICPA letter to the IRS commissioner highlights their request to revoke the fingerprinting mandate as part of the tax preparer oversight program.

According to the AICPA, these new fingerprinting regulations are seen as unnecessary and place a burden on small and medium sized CPA firms to comply. Many of the administrators who assist with tax preparation are supervised non-signing, non-licensed staff at CPA firms who, under new IRS regulations, would need to be fingerprinted. Interested tax groups feel that because these workers are not required to take competency exams or continuing education classes they should not be subject to mandatory fingerprinting.

These regulations demonstrate attempts by the IRS to weed out unscrupulous tax preparers in its ongoing effort to curb consumer tax fraud. Previous to this, tax preparers were hit with the Preparer Tax Identification Number (PTIN) regulation requiring attorneys, CPA’s, EA’s (Enrolled Agents) and others paid to prepare tax returns to register to obtain their own PTIN. Another added requirement is the Return Preparer’s Competency Test for the others (including tax preparers) who receive payment for tax preparation. This test must be passed to receive Registered Tax Return Preparer (RTRP) recognition.

Attorneys, CPAs or enrolled agents are not required to take the test.

While some policing efforts are less than perfect, these measures show IRS desire to prevent tax fraud from those whose sole purpose is to deceive consumers. As the tax industry grows, so will the ways to cheat the system and government prevention can only go so far. Whether seeking help from a tax preparer to handle your tax return or hiring the services of a tax attorney to help resolve your IRS tax debt, consumers will need to do their homework first! Gathering useful information from the businesses own website can help you learn volumes about the tax professionals you are entrusting important financial matters to. The IRS holds you responsible for your own taxes no matter what, so getting online to do a little research before you hire the best firm for your needs, will give you peace of mind knowing you made an informed decision.

Here are three main points to keep in mind when checking out a tax professional’s credentials:

1. Make sure your tax preparer has a valid PTIN

Ask your tax preparer if they have a PTIN. If they hesitate, RUN because they most likely have something to hide. The IRS requires PTIN renewal every year, so most tax scammers would unlikely renew if perceived egregious in their practices.

2. Consult the Better Business Bureau

Check out your tax professional on the Better Business Bureau’s website.

Consumers start the complaint process against fraudulent companies with the BBB, so it’s a great place to begin your research. Be sure to assess the following points:

Examine the grade rating (example: B-)
Is business is accredited (adheres to BBB accreditation standards). If so, for how long?
Are there any complaints? Does it appear the company has resolved them?

Read all the analysis and Trust Link reviews to get helpful feedback from previous client experiences. Would you hire a company with a C grade or lower and many unresolved complaints because of their slick ads? Look for a professional with a grade B- or higher and RUN from advertisements from companies that guarantee success!

3. Use Google to Check Credentials and Determine Credibility

Google the company name with the words “complaint,” “rip-off” and “scam.” Then Google the founder’s name and check his/her credentials. If the firm has a tax attorney (or several), check with your state’s bar to see if there are complaints rendered against them. Consider the following:

How many years is the firm in practice?
Does he or she have references?
Is he or she licensed?
What trade affiliations is the firm associated with?
Check to see if they meet educational, experience and examination requirements. This is usually found on the company’s website to then be confirmed on affiliate sites.
Social media efforts such as Facebook and LinkedIn can be helpful. Not all firms participate but it’s worth looking for their efforts. Check for recent content and information posts. The benefit: you will be able to see all comments both good and bad.

Taking these three initial steps will go a long way to ensuring you have done your due diligence and employed the best tax professional to handle your needs. For assistance with finding the right tax help service for your tax problem, check out our tax attorney services. Remember, if it’s too good to be true, it probably is. Don’t fall victim to a scam tax help firm or tax preparer promising more than they can deliver – such guarantees can put you further in debt and on the wrong side of the IRS.

Payroll Taxes Unpaid by Labor Agency Owner, Faces Prison Time

TRS — Wed, 23 Nov 2011 04:18:19 +0000

Doris Ruiz, of Minneapolis, Minn., was charged with one count of conspiracy to defraud the U.S. and ten counts of failure to account for and pay over federal employment taxes. The indictment alleges that from 2005 to 2007 Ruiz diverted $152,292.44 in payroll taxes by instructing employees to stop preparing tax return forms.

Ruiz is the owner of Olen Staff Company, a temporary work agency in Minneapolis. If convicted, she faces up to five years in prison for each count.

Tax Evasion Guilty Plea by Lawyer, Admits Hiding $1.5 Million

TRS — Sat, 29 Oct 2011 21:35:57 +0000

A Maryland attorney pleaded guilty to tax evasion and structuring financial transaction to avoid reporting $1.5 million.

Stanley Needleman, 68, of Pikesville, Md., is a criminal defense attorney, practicing law for more than 30 years in state and federal court. Clients made payments mostly in cash, which was kept in a large bank envelope. At the end of each business day, Needleman took the bank envelope with the day’s receipts home with him. No one at the office tallied the daily receipts or completed bank deposit slips. The next day, Needleman would return the bank envelope to the office empty.

“Stanley Needleman committed tax evasion by omitting $1.5 million of income from his federal tax returns over five years, and he concealed his tax fraud by failing to report large cash receipts from his clients and by breaking up his large bank deposits into smaller amounts in an effort to avoid bank reporting requirements,” U.S. Attorney Rod J. Rosenstein said in a statement.

“People who defraud the IRS shift the cost to honest taxpayers, and businesspeople who evade financial reporting requirements allow other criminals to spend their illegal proceeds without being detected by authorities.”

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Tax Resolution Tip: Avoid Tax Help Scams

TRS — Tue, 04 Oct 2011 23:19:34 +0000

Like all scams out there, if it’s too good to be true, it probably isn’t true. There are many tax scams making extraordinary claims like clearing your IRS back taxes in full. While tax help is available, make sure you investigate and ensure it is the kind of help you need. For help with seeking out the tax help you need, check out our tax attorney services.

Check out 365 Ways to Keep the IRS at Bay for more daily tax tips and read our Tax Help Articles for more great tax relief advice.

Tax Fraud by Alabama Woman Gets Her 63 Months in Prison

TRS — Wed, 28 Sep 2011 19:36:05 +0000

Lakecia Motley, 32, of Montgomery, Ala., was sentenced to 63 months in federal prison for tax fraud and ordered to pay $676,465.49 in restitution to the IRS. At Motley’s plea and sentencing hearings, the prosecutors proved that from 2005 to 2007, she and her co-conspirators filed numerous fraudulent tax returns using stolen identity information. The United States lost a total $676,465.49 from the false tax returns.

Employment Tax Fraud by Miami Contractor Gets Him Prison Time

TRS — Tue, 30 Aug 2011 16:21:16 +0000

A Miami contractor was sentenced to 18 months in prison for employment tax fraud.

Reynaldo Orozco was also ordered to pay $504,047 in restitution to the United States.

Orozco previously pleaded guilty to one count of filing a false employment tax return on March 22, 2011. According to court documents, from 2004 to 2007, Orozco owned and operated Rock Construction Builders Inc., a construction business located in Miami-Dade County.

Orozco admitted that he issued RCB corporate checks to various other corporations that he said were legitimate subcontractors.

In truth, these corporations did not perform work for RCB. Orozco cashed the checks at local check cashing stores and used the bulk of the cash obtained in this manner to pay RCB employees. Orozco failed to report the cash wages on quarterly employment tax returns and failed to withhold and pay over employment taxes on the wages.

From 2004 to 2007, RCB failed to report approximately $3.3 million in cash wages to the IRS. The United States Treasury suffered an employment tax loss of approximately $504,047.

The man in the article above obviously had his reasons for not filing payroll taxes. Whatever they were, they didn’t stand up in court and he is still guilty of tax evasion. If you have problems paying your payroll taxes, you are putting your business and your freedom at stake. Tax Resolution Services has helped many businesses resolve payroll tax problems. Learn more about our payroll tax help services on our tax relief website.

Tax Fraud Committed by Kentucky Cop Gets Him 39 Months in Prison

TRS — Sat, 27 Aug 2011 04:52:31 +0000

A former Shively, Kentucky, police officer was sentenced to 39 months in prison and three years of supervised release after being found guilty by a federal jury of multiple counts of tax fraud and lying to the IRS.

Following a three-week trial, the jury found Curtis Gordon Jr., 40, of Louisville, Kentucky, guilty of three counts of filing false federal income tax returns, three counts of failure to file federal income tax returns, one count of bank fraud, and one count of submitting a false document to the IRS.

“Today’s sentencing is an appropriate punishment for the acts of willful fraud that Mr. Gordon was convicted of,” said United States Attorney David J. Hale in a statement.

“Tax fraud is a serious crime that will be prosecuted by this office and diligently investigated by the Treasury Inspector General for Tax Administration and the Criminal Investigation Division of the Internal Revenue Service.”

The IRS excuses no one! Whether you are a celebrity, a policeman or a civilian, if you don’t pay your taxes the IRS will find and punish you. If you are facing tax problems, cheating the IRS is not the way to go. Tax Resolution Services can help you settle your back tax debt and help you find tax relief moving forward. Tax Resolution has helped thousands and we can help you too! Contact us for a free tax relief consultation.

Tax Fraud Scheme Promoter Sued by U.S. Government

TRS — Fri, 19 Aug 2011 04:20:08 +0000

The United States has sued a Washington man to stop him from promoting an alleged tax fraud scheme.

The government’s complaint alleges that John Lloyd Kirk promotes the use of fabricated Internal Revenue Service Forms 1099-OID to report fictitious income tax withholding. Kirk’s customers allegedly file federal tax returns claiming huge tax refunds based on the fake withholding.

According to the complaint, Kirk, who resides in Des Moines, Wash., promotes the scheme through his business, the Indian Nations Advocate Law Office. Kirk allegedly holds seminars in the western United States and sells DVDs of his seminars to promote the tax scam.

The complaint states that at least 31 of Kirk’s customers have used the scheme to make fraudulent tax refund claims totaling approximately $8 million.

Claiming bogus tax refunds based on false Forms 1099-OID is one of the IRS’s “Dirty Dozen” tax scams for 2011. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of tax fraud promoters and unscrupulous tax return preparers.

Participating in a tax fraud scheme like the one promoted by Kirk is illegal and not the way to solve any tax problems. Don’t turn to tax scams to avoid the IRS, instead face your taxes and find tax relief for the moment and the future. Call Tax Resolution Services for a free tax relief consultation at (888) 699-7630.

Tax Fraud Committed by Kentucky Cop Gets Him 39 Months in Prison

Lessons From the Tax Fraud Files: Do Not Claim 19 Non-Existent Dependents on Your Tax Returns

TRS — Tue, 16 Aug 2011 18:46:27 +0000

California Women Faces 143 years in federal prison and fines totaling $5.6 million for tax fraud

This seems like a no brainer, however Norma Coronel of Livermore, California, thought she could outwit the IRS by claiming 19 non-existent children on her federal tax returns.

Coronel, who now faces 143 years in prison and $5.6 million in fines, claimed she had 19 children on the same day: Dec. 11, 2002 in Los Angeles (seems like that would be pretty big news). However, hospital records show she gave birth to one child on that date. This minor detail sent a red flag to the IRS. She also obtained fraudulent Social Security numbers.

Norma Coronel was indicted on 35 counts and was arraigned last Monday in a U.S District Court in Los Angeles. The investigation and prosecution of Coronel was conducted by IRS – Criminal Investigation, the Treasury Department’s Office of Inspector General for Tax Administration, and the Social Security Administration-Office of the Inspector General, in conjunction with the Tax Division of the United States Attorney’s Office in Los Angeles.

The takeaway? Never claim false dependents on your tax returns as a way to save a few bucks. It will result in a lot more agony than telling the truth and paying what you owe in the first place. If you think can’t afford to pay your taxes, consult a Tax Attorney or Certified Tax Resolution Specialist who can help you identify better alternatives than prison.

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